Gordon v Lever

The case of Gordon v Lever was heard in the Supreme Court of New South Wales. The dispute between the parties, Gordon and Lever, centred around the assessment of costs under section 88K(5) of the Conveyancing Act 1919 (NSW). The primary legal issue for the court was to determine the appropriate method for calculating the costs associated with the transfer of property, specifically whether the costs should be assessed on a detailed, itemised basis or if a more general, lump sum approach was permissible.

The court examined the statutory framework provided by the Conveyancing Act, focusing on the language of section 88K(5) and its application to the facts of the case. It was determined that the section allows for a degree of discretion in the assessment of costs, which can be exercised by the court based on the specific circumstances of each case. The court emphasised that while detailed itemisation of costs may be ideal, it is not always necessary, and a general assessment can be appropriate if it accurately reflects the work done and the expenses incurred. The court also considered the principle of proportionality in cost assessments, ensuring that the costs awarded are neither excessive nor inadequate.

In light of the above, the court ruled that the costs should be assessed in a manner that is fair and reasonable, taking into account the nature and complexity of the case, as well as the necessity and reasonableness of the costs incurred. The court found that the respondent's approach to cost assessment was appropriate and did not contravene the statutory provisions. The decision was made in favour of the respondent, and the court ordered that the costs be assessed as determined by the respondent, subject to any objections that may be raised within the specified timeframe.